The opinions of economists on interest hike by the Federal Reserve are divided; 31% of economists expect the Fed would raise the interest rate by June, and other 31% expects in September, and others expect in July. The BREXIT is the line between these expectations. My expectation of interest rate hike by the Fed is September. The BREXIT would not have the great impact on the overall economic activities, but will affect on financial markets. Earlier year, the interest hikes by the Fed were expected four times but is reduced to one time. It seems to depend on the results of BREXIT.

The Fed is currently under tremendous political pressure. The Democratic Senator Elizabeth Warren addressed the issue of diversity within the Fed Reserve. Senator Bernie Sanders complains that the easy monetary policies by the Fed worsen the income inequality. Also, the current Republican president candidate Donald Trump is also putting pressure the Fed not to raise the interest rate. He will extend his influences on the Fed’s monetary policy if he is elected to be a president of the United States. By the end of this year, the economists expect the Fed fund rate to be 0.76% decreasing from 0.86% earlier expectation, which implies that only one-time interest rate hike is expected.